$Tesla Motors(TSLA)$Tesla is evaluating a site near Corpus Christi in South Texas for a possible $375 million plant that would refine lithium hydroxide used in batteries, potentially providing the company with a steady supply of an essential material for its battery and electric vehicle manufacturing operations in Travis County.
If Austin-based Tesla goes through with plans for the refinery in Nueces County, battery-grade lithium hydroxide "will be packaged and shipped (from the site) by truck and rail to various Tesla battery manufacturing sites supporting the necessary supply chain for large-scale and electric vehicle batteries," it said in its application for tax breaks for the project under the state's Chapter 313 incentives program.
Tesla said the refinery would be the first of its kind in North America. In addition to lithium hydroxide, it said the facility would have the capability to process and refine other types of materials used in batteries as well.
The company is seeking about $16.2 million in tax breaks over 10 years from the Robstown Independent School District for the refinery project, according to an American-Statesman analysis of the application, assuming no change in the district's tax rate over that time.
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